FILE - In this June 19, 2019, file photo cargo ships are docked at the Port of Los Angeles in Los Angeles. On Thursday, Aug. 29, the Commerce Department issues the second estimate of how the U.S. economy performed in the April-June quarter.(AP Photo/Marcio Jose Sanchez, File)

US economy grew at a moderate 2% annual rate last quarter

August 29, 2019 - 5:45 am

WASHINGTON (AP) — The U.S. economy slowed in the spring, and many economists think the slowdown will continue through the second half of the year, a possible headwind for President Donald Trump's hopes that a surging economy will provide the backdrop for his 2020 re-election campaign.

The Commerce Department reports that the gross domestic product, the country's broadest measure of economic health, advanced at a moderate 2% annual rate in the April-June quarter, down from a 3.1% gain in the first quarter. The new estimate was lower than the government's initial estimate a month ago of 2.1% annual growth.

Trump has pledged to boost GDP growth to annual rates of 3% or better, but many economists see GDP slowing sharply after hitting 2.9% last year.